![]() ![]() Prior to any downgrades and price target cuts from outside analysts, EMC’s consensus price target from analysts was about $30, and that is just under $30 now. This is just more proof that the world of data storage growth is nearly endless. It showed that some 90% of Big Data is simply unstructured. Growth is also seen ahead in the VCE business.ĮMC’s 2012 annual report pointed out that the 2.8 zettabytes globally would be somewhere around 40 zettabytes by the year 2020. The latest VMware earnings report was better than expected, but the recent weakness has pulled its stock gains back down to where the pre-earnings prices were. (NYSE: VMW) overlap will be a plus for EMC. We also think that the continued VMware Inc. It should have been anticipated that storage sales would grind to a halt. It seems possible EMC could be shielded at least somewhat from the federal situation going forward. What is interesting here is that EMC’s new products and efforts actually may insulate it from some of the traditional slowing trends. In short, company IT budget cutbacks may be seen temporarily, even if unrelated industries face sudden business loss as a domino effect. While this was just under the expectations, it is still sales growth of almost 7% over 2012.ĮMC depends a lot on sales to local and federal governments, but it also sells through many technology players that also overlap in sales with government and other key business entities, because those clients deal with government entities or are subject to sudden slowing trends in times of uncertainty. Consolidated revenues now are expected to be about $23.25 billion for 2013. federal spending and a back-end-loaded quarter. ![]() The theme to consider is that the results were blamed on a decline in U.S. This should easily help the EMC stock price more than it hurts it. The $3.5 billion cited represents close to 150 million shares at the current price level, and that would be about nine full trading days of volume on average. It could be a handy driver of share price support ahead. EMC forecast that it would repurchase around $3.5 billion of its own common stock in 2013 and the first half of 2014. EMC also ended the third quarter with $17.5 billion in cash and investments. Third-quarter consolidated revenue was up 5% to $5.5 billion, and comparable earnings came in at $0.40 per share. What has been seen in the stock price in the past two days simply may be an overreaction to what should have been anticipated, but we also have to point out that the weakness may persist as technical damage was done to EMC’s stock chart. This looks like another situation when the efficient market hypothesis failed to come into play. It should have been no surprise that a government shutdown would have an impact on orders for the storage giant. (NYSE: EMC) was hit a little harder than we expected with its company earnings report for the third quarter and for its guidance. ![]()
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